Adelaide Brighton (ABC)

Credit Suisse has kept its “neutral" rating and price target of $3.65 on
Adelaide Brighton
after the company reaffirmed its financial 2011 guidance for earnings to be about $151 million, similar to that achieved in the last financial year. The broker says this implies a stronger second half, and the company remains Credit Suisse’s top pick of the sector.

Key points the broker noted from the annual general meeting include: increased financial certainty about cement supply contracts in South Australia and Western Australia; the Victorian and Western Australian markets remain robust due to a ramp-up of infrastructure and mining projects; but import competition remains a threat due to the currency.

UBS says because of the company’s robust balance sheet, proven track record, monopolistic lime assets and conservative board management, it believes the company should trade at least in line with market multiples, instead of below as it now is.